Does Pump It Up agree to be a guarantor for any lease?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) The landlord agrees to consent to your collaterally assigning the lease to us or our designee, granting us the option, but not the obligation, to assume the lease from the date we take possession of the Premises, without payment of any assignment fee or similar charge or increase in any rentals payable to the landlord.
Our current form of Collateral Assignment of Lease is attached to this Agreement as Exhibit 2.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up does not agree to be a guarantor for any lease. However, the landlord agrees to consent to the franchisee collaterally assigning the lease to Pump It Up or its designee, granting Pump It Up the option, but not the obligation, to assume the lease from the date they take possession of the premises, without payment of any assignment fee or similar charge or increase in any rentals payable to the landlord.
This arrangement provides Pump It Up with a mechanism to potentially take over a lease if a franchisee defaults, but it does not obligate them to do so. The landlord's consent is required for this assignment, but such consent will not be unreasonably withheld.
For a prospective franchisee, this means that securing a lease is their sole responsibility, and Pump It Up is not committed to backing the lease financially. However, the potential option for Pump It Up to assume the lease could be seen as a safety net, although it is not guaranteed. Franchisees should carefully review the collateral assignment of lease agreement (Exhibit 2) to fully understand the conditions and implications.